Internet Corporation for Assigned Names and Numbers (ICANN) is investigating complaints that insider information is being used to snatch desired domain names before an individual or business can register them.

The Security and Stability Advisory Committee of ICANN termed the practice "domain name front running" and likened it to a stock broker buying or selling shares ahead of a client's trade, in anticipation of a movement in price. In the case of Internet addresses, many people who see a domain name available the first time they check find it already taken by the time they return to buy it.

Comments

My best guess was either that someone had compromised a web-based whois proxy (i.e. the web server with the "see if your domain is available" form) or the service or some corrupt person at the service was selling the requests to a domain taster.